Tax relief on donations to Charity
DONATIONS MADE FROM 1 JANUARY 2013 ONWARDS
From 1 January 2013, all donations from individuals (both PAYE workers and Self-Assessed) will be treated the same with tax relief in all cases being repaid to the charity at a blended marginal rate of 31% which will be regularly reviewed.
Essentially this means that tax relief, as a deduction, is no longer available to self-employed individuals in respect of donations made to an Authorised Charity from 1 January 2013 onwards.
The minimum threshold of €250 for cumulative annual donations remains and an annual limit of €1 million per individual will apply for which tax relief will be granted.
Donors will still need to provide the charity with their PPS number but an option to provide "enduring declaration" for up to five years will help reduce the administrative burden of having to complete annual forms; however, the option to make an annual declaration must still be made available to a donor.
Tax refunds will only be issued to charities after relevant annual tax returns have been filed to Revenue by or on behalf of donors; this essentially means an Employer P35 return in respect of PAYE donors and a Self Assessment Tax Return in respect of self-employed donors.
| (from 1 January 2013)
Tax relief available |
Your donation
in the year |
Extra payment to Charity by Revenue |
Total received by your Charity |
| Blended rate 31%
Blended rate 31% |
€690
€250 (€20.83 per month) |
€310
€112.32 |
€1,000
€362.32 |
If you have any questions in relation to the new system, please contact a member our professional team on +353 74 912 2820 or email: mail@edwinfoley.com.
DONATIONS MADE UP to 31 DECEMBER 2012
Where an individual has made a donation to an Authorised Charity that exceeded €250 during the course of a calendar year, tax relief can be claimed subject to a four year time limit.
The method by which tax relief is granted on donations up to 31 December 2012 depends upon whether you are either a PAYE worker or a Self-employed individual as outlined below:
PAYE workers
If you were a PAYE worker resident in Ireland who paid tax, the value of your donation can be increased by completing a simple form called CHY2 CERT (see PDF below) and sending it to your nominated Charity.
This will enable the Revenue Commissioners to pay an additional amount to the Charity depending upon the rate at which you paid tax:
| (Up to 31 December 2012)
Your tax rate |
Your donation
in the year |
Extra payment to Charity by Revenue |
Total received by your Charity |
| Standard rate 20% | €250 | €62.50 | €312.50 |
| Higher rate 41% | €250 | €173.73 | €423.73 |
Self-employed individuals
If you were a self-employed taxpayer resident in Ireland, tax relief is granted by including details of your donation on your annual tax return, up to 31 December 2012 only.
The actual cost of your donation is reduced due to the fact that you will pay less tax to the Revenue Commissioners:
| (Up to 31 December 2012)
Your tax rate |
Your donation
in the year |
Reduction to
your tax bill |
Actual cost of your donation |
| Standard rate 20% | €250 | €50 | €200 |
| Higher rate 41% | €250 | €102.50 | €147.50 |
Claim for the last 4 years
If you have previously made donations to a Registered Charity but have not submitted a claim, we recommend a review be completed of the last four years as it could be extremely valuable to you and/or your nominated Charity.
Authorised Charities
The following is a link to a list of Authorised Charities listed on the Revenue Commissioners website that are eligible for the donation scheme:
http://www.revenue.ie/en/business/authorised-charities-resident.html
Further assistance
If you have any questions, please contact a member of our professional Team on +353 74 912 280 or email us at mail@edwinfoley.com.
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